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Divorce From Uncle Sam Is Harder for U.S. Citizens

8/12/2013 6:54AM

More U.S. citizens are giving up their American passports as the government cracks down on tax evaders. The WSJ’s Deborah Kan speaks to lawyer Eugene Chow about the main reason why many don’t want to be American anymore.

This transcript has been automatically generated and may not be 100% accurate.

... the the ... he lets acts down globally on tax and there is a record number of people are announcing the U S citizenship I'm Deborah con joining me now is Eugene shall ... untapped he says ... C I ... a crazy lah present people who wanna announce this in essence an hour at living here and honk on ... what what's your typical candidate for this ... well I know that's not going to sell newspapers and ... have the people on people watch most regional dishes though that ... the majority people and not responding to a crackdown on ... tax reporting ... initially people I represent a law abiding American citizens who simply unsettled overseas with me the choice ... not to be Americans anymore because they've adopted Hong Kong is the case may be ... as the home ... it's uh oh here they would say he of the family I hear the coach Leigh identifying with ... with a aam and they don't want to be Americans added to the fact that you have to pay at me and there is one of the few countries that meet taxes its citizens ... living abroad I mean that must ensure an equation for for why they really want around I don't think so much about the taxes you play as the regulatory reclaim its ... you could be making this a hundred thousand dollars the year and you have a ninety two thousand roughly four unearned income exclusion ... in U K richly no taxes but they wanna know about your bank account you wanna know ... you know was the maximum amount you have in a bank account what passes to have the U S ... and the sentences that are pushing these new laws ... they're responding to this UBS can do and all of which are Beals peoples of Americans living in America Opel on hiding ... money offshore ... instead of punishing Americans who on the field to see some of my clients the Proms even having a bank account opened because ... banks don't want to do this is an American citizens ... and the answer the IRS will probably say local bank with the city to the Bank of America twelve maybe in India ... that's not the bank to do business with maybe they can offer the kind of services they can offer ... and also ... as a much more complicated questions and on tax professes of the tax lawyers in America off ... for much tax prosecutors coming from the angle it's kinda big cheeses of people saying that ... you better ... give up your citizenship and then the real tax planning in reply to everything ... I think the publicity gives people ... nervous simple ... failure to report on ... the sloping a Form TD F ninety heightened twenty two point one four and the recovery going on ... could ... subject you to a five hundred thousand dollar fine ... and a five year prison term ... but the reality is ... most people told the prosecutor for that but who wants to be labeled as a criminal with stupid little mistake like identified fifty thousand Hong Kong dollars to six thousand is often reported ... and they can throw the book at me ... I'm not come at any of the state can pick this up and just use it against ... a sunny IRS data recently released numbers of people over an outstanding as a battle in just over eleven hundred people for twenty thirteen so far ... I mean is the Number actor and and it is this kind of an unprecedented that a number well I think that the trend is deftly going up ... but the Federal register nobody leaves the Fed with ... the richest except when this is very boring publication ... that you know somehow Congress decided to name and shame those people that the side to give up their passports and it is an obscure thing and so journalists out of picking up in ... a solid model spartan zenith of is the story here ... but those statistics are notoriously in Akron plans a game of the past with the year-ago nine months ago that I'll into twenty thirteen this ... is one of the Treasury gets around to compiling it and the coordination between state the palm of the Treasury Department ... for example some people don't know the FBI also compiles statistics ... and it tickles that the six yen compared ... with a Cami like four thousand something ... and those on include long term residents although statistics thus ... due after the show an uptrend ... but I don't think that they really are accurate because the last people that don't appear to indicate the dumping the people that have given enough that ... and just the unit missing ... a lot I added in May I mean I've been to dinner parties where people said why really like it that my US passport but ... the amount of tax I would have to pay ... in order to do said doesn't even doesn't make it worth it to us through the use of mark to market its attacks and ... some of my good people settlement you know he married ... to Uncle Sam a long time your quiet law to wealth while you're an American ... even the viewer acquired in all this easy one a piece of that annually and is Outlook sexy even go up for their or is there any indication my I think that this this already gone up ... and that I think most Americans of offbeat choice keeper should have a choice ... the view like the country you go don't a lot of compliance the end of the of the Buchanan is the height of textures depiction in the United States ... the killing of a tax motivated reasons he released the fifth plea analyze how you use the number twelve hundred EST ... and you look of those the majority of those people are not these fat cats that sent the Schumann of the of the politicians pointing fingers at the other house some people ... have happened to be high income earners ... but you know they'll pay taxes in the jurisdiction with the essential ... India like this here so why do you know is like forcing your spouse to be married to you when it's when the relation is over the Minnesota State rail like you wanted the Iraqi life is that ... but the Alivia been the Hong Kong or Singapore weather for fifteen twenty years ... the run say your pet said ... why do I not know why you ... might get you pumped keep ... abortion bailout yes I doubt we will leave it that thank you very much a Jamestown get to see if the two for one that's rated added any estate dot com and ever con ...